PNB Q1 Results: Net profit jumps 307% to ₹1,255 crore; NII grows 26% YoY to ₹9,504 crore

livemint.com:

Punjab National Bank (PNB), the state-run lender reported a standalone net profit of ₹1,255.4 crore in the first quarter of FY24. The bank had posted a net profit of ₹308.4 crore in the corresponding quarter of last fiscal. Net interest income (NII), which is the difference between interest earned and interest expected, increased 26% to ₹9,504.3 crore in Q1FY24 from ₹7,542.8 crore, YoY, meeting street estimates.

Pre-provisions operating profit (PPOP) rose nearly 11% in Q1FY24 to ₹5,967.99 crore from ₹5,379.21 crore, YoY. Asset quality of Punjab National Bank during the April-June 2023 quarter improved sequentially. Gross non-performing assets (NPA) as a percentage of gross advances in Q1FY24 declined to 7.73% from 8.74% in the previous quarter.

Net NPA as a percentage of net advances fell to 1.98% from 2.72%, QoQ. On absolute basis, gross NPA during the quarter under review decreased to ₹70,899.34 crore from ₹77,327.67 crore, QoQ, while Net NPA declined to ₹17,129.47 crore from ₹22,585.04 crore, QoQ. PNB earnings were largely in line with the estimates.

Also Read: Shree Cement Q1 Results: Net profit jumps 84% to ₹581 crore; revenue growth at 19% YoY Provisions and contingencies during the quarter declined 17.2% to ₹3,965.26 crore as against ₹4,790.19 crore in the same quarter last year. NPA provisions fell to ₹4,374.48 from ₹4,814.04 crore, YoY. The bank’s Capital Adequacy Ratio - Basel-III - in Q1FY24 was at 15.54% versus 15.50%, QoQ, and versus 14.82%, YoY.

Deposits for the quarter ended June 30, 2023, rose 14.17% to ₹12.98 lakh crore from ₹11.37 lakh crore in the corresponding quarter of last year. Advances in Q1FY24 grew 16.30% to ₹863,731 crore from ₹742,643 crore, YoY. PNB share price jumped more than 3% after the